More green
It was another very positive week on Wall Street as 2011 continues to get off to a good start. This is a great omen for the rest of the year because, as we talked about last week, the results of early January tend to be a very good predictor of the full year results.
For the TSP, the C-fund was up 1.72% last week, the S-fund gained 2.24%, and the I-fund jumped 2.74%, as the dollar pulled back sharply on the week. Bonds (F-fund) were up 0.11%, and the G-fund picked up 0.06%.
For the month the C-fund is now up 2.90%, the S-fund has made 3.09%, and the I-fund has added 1.89%. The F-fund (bonds) is up 0.14% and the G-fund is +0.11%.
Based solely on the charts, I am very optimistic about what we are seeing. This is a strong bull market and fighting it will be like swimming upstream.
The question for those who are currently not invested in stocks is, should I get in now?
Chart provided courtesy of www.decisionpoint.com
We are seeing enough indications that the market is stretched to the upside and usually patience pays off.
At some point, when things are this extended, a bout of bad news will spook investors who realize how vulnerable their profits are, and you could get a quick correction, but in this type of environment the dips are usually short-lived so you can't procrastinate.
How extended are we? As you can see in the chart above, the S&P 500 is now 130-points above its 200-day EMA, and that is quite extended.
Below, the bullishness of the "dumb money" is near 80, and we have not seen 80 in this indicator in over 6 years, and going back 15-years, I only see 3 instances of 80 being reached.
Chart provided courtesy of www.sentimentrader.com
So, I am looking for some kind of pullback within the next few weeks, perhaps a "sell the news" reaction following earnings season, which began last week. But don't hesitate. Any pullback is an opportunity until the charts show us that the positive trend is ending.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
It was another very positive week on Wall Street as 2011 continues to get off to a good start. This is a great omen for the rest of the year because, as we talked about last week, the results of early January tend to be a very good predictor of the full year results.
For the TSP, the C-fund was up 1.72% last week, the S-fund gained 2.24%, and the I-fund jumped 2.74%, as the dollar pulled back sharply on the week. Bonds (F-fund) were up 0.11%, and the G-fund picked up 0.06%.
For the month the C-fund is now up 2.90%, the S-fund has made 3.09%, and the I-fund has added 1.89%. The F-fund (bonds) is up 0.14% and the G-fund is +0.11%.
Based solely on the charts, I am very optimistic about what we are seeing. This is a strong bull market and fighting it will be like swimming upstream.
The question for those who are currently not invested in stocks is, should I get in now?
Chart provided courtesy of www.decisionpoint.com
We are seeing enough indications that the market is stretched to the upside and usually patience pays off.
At some point, when things are this extended, a bout of bad news will spook investors who realize how vulnerable their profits are, and you could get a quick correction, but in this type of environment the dips are usually short-lived so you can't procrastinate.
How extended are we? As you can see in the chart above, the S&P 500 is now 130-points above its 200-day EMA, and that is quite extended.
Below, the bullishness of the "dumb money" is near 80, and we have not seen 80 in this indicator in over 6 years, and going back 15-years, I only see 3 instances of 80 being reached.
Chart provided courtesy of www.sentimentrader.com
So, I am looking for some kind of pullback within the next few weeks, perhaps a "sell the news" reaction following earnings season, which began last week. But don't hesitate. Any pullback is an opportunity until the charts show us that the positive trend is ending.
Good luck, and thanks for reading. We will be back here next week with another TSP Wrap Up.
Tom Crowley
www.tsptalk.com
Weekly Wrap-Ups Archive
